Dow Jones today threatens to take a 6-day rally; Microsoft, Disney in the purchasing ranges; Chegg ready for escape



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Shares opened lower on Tuesday, ready for a break after hitting another round of new record highs on Monday. Bitcoin also broke a new record, with a boost from Tesla. HaynesBrands and distance education leader Chegg both managed to make inroads after reporting the results. And, on the Dow Jones today, Microsoft and Disney shares traded in buy ranges.




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The Dow Jones industry opened down 110 points, a loss of 0.3%. The S&P 500 cut losses to less than 0.1%. The Nasdaq Composite shed its small opening losses and broke its equilibrium line 0.2% in the stock market today. Industrials in the Dow and the S&P 500 are each sitting on six-day rallies, their longest climbs since August. The Dow, S&P 500, Nasdaq Composite and Russell 2000 all hit record highs on Monday.

In Washington, the House of Representatives was due to start work on the $ 1.9 trillion stimulus package after the House and Senate approved a budget bill late last week that would allow the process to move forward. . The most optimistic forecasts of the completion of the project before the end of the month. The impeachment proceedings which begin Tuesday in the Senate are not expected to affect the markets.

Based in china NetEase (NTES) and Baidu (BIDU) were the first leaders of the Nasdaq, up about 5% each. Video game developer Take-Two Interactive (TTWO) fell nearly 7%, to the bottom of the Nasdaq 100 and the S&P 500, after releasing third-quarter tax results.

HVAC Leader Carrier (CARR) trailed 5.9% lower on the S&P 500 after its fourth quarter report. Underwear manufacturer Hanes brands (HBI) grabbed first place in the S&P 500, up more than 20% and surpassing a handle-cup buy point after its fourth quarter report. Head of research Gartner (IT) also skyrocketed, up more than 10% after reporting a big beat in the fourth quarter.

Inventories in buy ranges or near buying points early Monday inclusive Walt disney (DIS), Microsoft (MSFT), HubSpot (HUBS), Berry Global (BERY) and RingCentral (RNG).

Dow Jones Today: Disney Buying Range

IBM (IBM) fell 1.6% to the bottom of the Dow today. The stock rose 1.5%, in a third consecutive advance on Monday, boosted by the announcement of a cloud computing / artificial intelligence development partnership with Palantir Technologies (PLTR).

Palantir shares rose 1.7% early Tuesday. IBD Leaderboard stock has been volatile, marking breakouts and quickly erasing gains and triggering sell signals. It ended on Monday extended, just above a buy point of 33.60.

Disney shares slipped 0.7%, after leaving a flat base on Monday upon learning that a foodie event was planned for its California Adventure Park, adjacent to Disneyland, next month. The shares traded a fraction in the red on Tuesday, after ending Monday in a buy range of 192.67.

Ranking: Corsair Gaming wins

IBD Ranking Stock Corsair games (CRSR) canceled its initial gain and plunged 5.2% after reporting better-than-expected earnings and revenue in the fourth quarter. Management has also raised its full-year revenue forecast to well above analysts’ targets.

Corsair shares are below a buy point of 51.47 in a 12 week cut base. An alternate grip entry offers a buy point of 49.70, although the grip is much deeper than the standard maximum of 13%. It is a defect that may indicate an increased risk.

IBD 50: Chegg, Power Eye monolithic purchasing ranges

IBD 50 action Chegg (CHGG) rallied more than 5% in early action, after exceeding fourth quarter goals, upping its forecast and predicting the pandemic shift to e-learning is an “irreversible trend.” Piper Sandler raised Chegg’s price target to 124 from 110.

The move sent the Chegg stock in a buy range above a tight three-week buy point at 104.92. The buy zone turns to 110.17.

Based in china 360 Digitech (QFIN) jumped 12.5%. The stock is working on its seventh consecutive weekly gain, an 89% lead that included a break above an 18.16 buy point in a cup base. Shares were extended nearly 13% above that buy point at Monday’s closing bell.

IBD 50 action Monolithic power (MPWR) gained 0.8% as it climbed higher in the buy range after support rebounded to its 10-week moving average. Caught up by recent volatility in chip stocks, monolithic stocks fell sharply to test support, despite a stronger-than-expected Q4 report on Thursday night. The stock is expected to join the S&P 500 Index at the start of trading next Monday.

World markets, oil prices

Asian equity markets were broadly positive on Tuesday. The Shanghai Composite rallied 2%, an unusual two-day gain as the stock market prepares to close for the New Year’s celebration in China which will last for a week from Thursday. The Hong Kong Stock Exchange will close Thursday through Monday. In Japan, the Tokyo Stock Exchange will close Thursday for the country’s national day.


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In Europe, the markets have become closely mixed in afternoon trading. The CAC-40 in Paris was down 0.1%, threatening to break its four-day lead. The Frankfurt DAX was down 0.3%. London’s FTSE 100 gave up its first losses and gained 0.15%.

Oil prices looked set to break their seven-day rally, but Brent crude was holding above $ 60 a barrel, and the U.S. benchmark West Texas Intermediate just below $ 58 – approaching its high of $ 65.65 as of January 2020.

Bitcoin rally continues

Bitcoin traded 7% higher after moving away from early highs above $ 48,000, according to CoinDesk. Cryptocurrency began to rally after Tesla announced on Monday that it had bought $ 1.5 billion in Bitcoin and was considering accepting the digital script as payment for Tesla automobiles.

Among the actions related to Bitcoin Marathon Patent Group (MARA) rallied 13% and MicroStrategy (MSTR) increased by 9%. Overstock.com (OSTK) was down 0.6%, after posting a 7.3% gain on Monday.

IBD Ranking Stock PayPal funds (PYPL), which started processing Bitcoin transactions in October, edged up 0.1%. The stock is extended after rebounding support to its 10 week moving average.

Coronavirus update: new cases, deaths decrease

The decline continued in the average number of new coronavirus cases reported daily in the U.S. The seven-day average peaked at 255,258 on January 11, according to Worldometer. Daily new cases fell to 110,694 on Monday, down more than 56% to the lowest level since Nov. 7, after 28 consecutive days of decline. Deaths began to decline much later, with the seven-day average of daily reported deaths peaking at 3,447 on January 26 and declining to 2,954 on Monday.

The Centers for Disease Control and Prevention reports that in the United States, 59.307 million doses of the vaccine have so far been distributed. Some 42.42 million doses, or nearly 72% of those distributed, were administered. As of December 30, less than 11.5 million doses had been dispensed, with approximately 2.1 million shots administered, for an application rate of 18.2%.

Dow Jones Today: Microsoft In Buy Range

Among the blue chips, Apple (AAPL) and Nike (NKE) remain below buy points on the Dow Jones today. Microsoft remains in a buy range above a buy point of 232.96, with a buy zone stretching to 244.61. caterpillar (CAT) and Goldman Sachs (GS) are both extended rebounds from their 10 week moving averages, but can shape basic patterns.


For a more detailed analysis of the current stock exchange and its status, study the big picture.


With the Dow, S&P 500, Nasdaq Composite and Russell 2000 all sitting on new highs, the market is off to an exciting start to the year. Hopes for continued improvement in the image of Covid-19, combined with optimism for the “hot economy” revival approach supported by the White House and the Democratic majority in Congress, as well as the Treasury and the Federal Reserve suggest that the market may still have fuel to run on.

But Monday’s Big Picture made it clear that the Nasdaq and S&P 500 are about to break through trendlines touching index highs dating back to November. He also warned that the deviation of the Nasdaq from its 50-day moving average was dangerously high.

These two elements signal investors to remain cautious, as they anticipate recent market gains.

Find Alan R. Elliott on Twitter @IBD_Aelliott

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